cit Final10Q

Doremus Financial Printing (212)366-3800—CIT 10-Q — Proof 5 5/5/05 6:41 PM 01.20825-C;TOC

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

Form 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2005

OR
[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-31369

CIT Group Inc.
(Exact name of Registrant as specified in its charter)

Delaware 65-1051192
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)

1211 Avenue of the Americas, New York, New York 10036
(Address of Registrant’s principal executive offices) (Zip Code)

(212) 536-1211
(Registrant’s telephone number)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes No _____
Indicate by check mark whether the registrant is an accelerated filer as defined in Rule 12b-2 of the
Securities Exchange Act of 1934. Yes No
As of April 29, 2005, there were 210,481,259 shares of the Registrant’s common stock outstanding.

Doremus Financial Printing (212)366-3800—CIT 10-Q — Proof 5 5/5/05 6:41 PM 01.20825-C;TOC

CIT GROUP INC. AND SUBSIDIARIES
TABLE OF CONTENTS
Page
____

Part I—Financial Information:
Item 1. Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Consolidated Balance Sheets (Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Consolidated Statements of Income (Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Consolidated Statements of Stockholders’ Equity (Unaudited) . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Cash Flows (Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Notes to Consolidated Financial Statements (Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-17
Item 2. Management’s Discussion and Analysis of Financial Condition and
and Results of Operations and
Item 3. Quantitative and Qualitative Disclosure about Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . 18-41
Item 4. Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Part II—Other Information:
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . 43
Item 3. Default Upon Senior Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Item 4. Submission of Matters to a Vote of Security Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Item 5. Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Item 6. Exhibits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

i

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PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
CONSOLIDATED BALANCE SHEETS (Unaudited)
($ in millions — except share data)
March 31, December 31,
2005 2004
___________________ ________________________
ASSETS
Financing and leasing assets:
Finance receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,859.6 $35,048.2
Education lending receivables pledged . . . . . . . . . . . . . . . . . . . 4,322.9 —
Reserve for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (620.4) (617.2)
________________ ________________
Net finance receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,562.1 34,431.0
Operating lease equipment, net . . . . . . . . . . . . . . . . . . . . . . . . 8,313.1 8,290.9
Finance receivables held for sale . . . . . . . . . . . . . . . . . . . . . . . 1,481.3 1,640.8
Cash and cash equivalents, including $234.4 and $0.0 restricted . . 1,638.1 2,210.2
Retained interest in securitizations and other investments . . . . . . . 1,123.2 1,228.2
Goodwill and intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . 906.4 596.5
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,756.8 2,713.7
________________ ________________
Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $56,781.0 $51,111.3
________________ ________________
________________ ________________
LIABILITIES AND STOCKHOLDERS’ EQUITY
Debt:
Commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,963.0 $ 4,210.9
Variable-rate senior unsecured notes . . . . . . . . . . . . . . . . . . . . 11,473.1 11,545.0
Fixed-rate senior unsecured notes . . . . . . . . . . . . . . . . . . . . . . 22,197.0 21,715.1
Non-recourse, secured borrowings — education lending . . . . . 4,638.9 —
Preferred capital securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253.3 253.8
________________ ________________
Total debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,525.3 37,724.8
Credit balances of factoring clients . . . . . . . . . . . . . . . . . . . . . . . . 4,269.8 3,847.3
Accrued liabilities and payables . . . . . . . . . . . . . . . . . . . . . . . . . . 3,619.1 3,443.7
________________ ________________
Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,414.2 45,015.8
________________ ________________
Commitments and Contingencies (Note10)
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48.8 40.4
Preferred capital securities
Stockholders’ Equity:
Preferred stock: $0.01 par value, 100,000,000 authorized;
none issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — —
Common stock: $0.01 par value, 600,000,000 authorized;
Issued: 212,119,700 and 212,112,203 . . . . . . . . . . . . . . . . . 2.1 2.1
Outstanding: 210,771,309 and 210,440,170
Paid-in capital, net of deferred compensation of $68.6
and $39.3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,654.5 10,674.3
Accumulated deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,316.5) (4,499.1)
Accumulated other comprehensive income / (loss) . . . . . . . . . . 31.2 (58.4)
Less: treasury stock, 1,348,391 and 1,672,033 shares, at cost . . . . (53.3) (63.8)
________________ ________________
Total Stockholders’ Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,318.0 6,055.1
________________ ________________
Total Liabilities and Stockholders’ Equity . . . . . . . . . . . . . . . . $56,781.0 $51,111.3
________________ ________________
________________ ________________

See Notes to Consolidated Financial Statements.

1


CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
($ in millions — except per share data)

Quarters Ended
March 31,
______________________________
2005 2004
___________ ___________
Finance income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,022.0 $ 896.9
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394.2 298.0
_______________ _______________
Net finance income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627.8 598.9
Depreciation on operating lease equipment . . . . . . . . . . . . . . . . . 237.6 235.8
_______________ _______________
Net finance margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390.2 363.1
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.3 85.6
_______________ _______________
Net finance margin after provision for credit losses . . . . . . . . . . . 344.9 277.5
Other revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239.4 230.4
Net gain on venture capital investments . . . . . . . . . . . . . . . . . . . . 10.8 0.7
_______________ _______________
Operating margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595.1 508.6
_______________ _______________
Salaries and general operating expenses . . . . . . . . . . . . . . . . . . . . 261.0 240.0
Gain on redemption of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 41.8
_______________ _______________
Income before provision for income taxes . . . . . . . . . . . . . . . . . . 334.1 310.4
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (122.8) (121.1)
Minority interest, after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.9) —
_______________ _______________
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 210.4 $ 189.3
_______________ _______________
_______________ _______________
Earnings per share
Basic earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.00 $ 0.89
Diluted earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.98 $ 0.88
Number of shares — basic (thousands) . . . . . . . . . . . . . . . . . . . . 210,656 211,839
Number of shares — diluted (thousands) . . . . . . . . . . . . . . . . . . . 215,090 215,809
Dividends per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.13 $ 0.13


2


CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)
($ in millions)
Accumulated
Other Total
Common Paid-in Treasury Accumulated Comprehensive Stockholders
Stock Capital Stock Deficit Income/(Loss) Equity
________ ________ ________ ____________ ______________ ___________
December 31, 2004 . . . . . . . . . . . $2.1 $10,674.3 $(63.8) $(4,499.1) $(58.4) $6,055.1
Net income . . . . . . . . . . . . . . . . . . 210.4 210.4
Foreign currency translation
adjustments . . . . . . . . . . . . . . . . 42.6 42.6
Change in fair values of
derivatives qualifying as cash
flow hedges . . . . . . . . . . . . . . . 47.4 47.4
Unrealized loss on equity and
securitization investments, net . . (0.8) (0.8)
Minimum pension liability
adjustment . . . . . . . . . . . . . . . . 0.4 0.4
______________
Total comprehensive income . . . . . 300.0
______________
Cash dividends . . . . . . . . . . . . . . . (27.8) (27.8)
Restricted common stock grants
amortization . . . . . . . . . . . . . . . 9.7 9.7
Treasury stock purchased, at cost . (59.3) (59.3)
Exercise of stock option awards . . (29.3) 68.8 39.5
Employee stock purchase plan
participation . . . . . . . . . . . . . . . (0.2) 1.0 0.8
_______ ________________ __________ _______________ __________ ______________
March 31, 2005 . . . . . . . . . . . . . . $2.1 $10,654.5 $(53.3) $(4,316.5) $ 31.2 $6,318.0
_______ ________________ __________ _______________ __________ ______________
_______ ________________ __________ _______________ __________ ______________


3


CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
($ in millions)
Quarters Ended
March 31,
______________________________
2005 2004
___________ ___________
Cash Flows From Operations
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 210.4 $ 189.3
Adjustments to reconcile net income to net cash flows
from operations:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . 248.3 248.2
Provision for deferred federal income taxes . . . . . . . . . . . . . . . 90.0 95.4
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.3 85.6
Gains on equipment, receivable and investment sales . . . . . . . . (66.6) (62.5)
Gain on debt redemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (41.8)
Net proceeds from finance receivables held for sale . . . . . . . . . 372.5 273.4
(Increase) decrease in other assets . . . . . . . . . . . . . . . . . . . . . . (48.5) 303.1
Increase (decrease) in accrued liabilities and payables . . . . . . . 131.1 (346.6)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46.5) (26.0)
_________________ _________________
Net cash flows provided by operations . . . . . . . . . . . . . . . . . . . . . 936.0 718.1
_________________ _________________
Cash Flows From Investing Activities
Loans extended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,603.0) (11,743.3)
Collections on loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,665.3 10,532.9
Proceeds from asset and receivable sales . . . . . . . . . . . . . . . . . . . 900.3 798.9
Purchase of finance receivable portfolios . . . . . . . . . . . . . . . . . . . (902.9) (595.1)
Net increase in short-term factoring receivables . . . . . . . . . . . . . . (319.6) (400.8)
Purchases of assets to be leased . . . . . . . . . . . . . . . . . . . . . . . . . . (326.2) (268.7)
Acquisitions, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . (152.6) —
Intangible assets acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (29.0) —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95.5 (1.1)
_________________ _________________
Net cash flows (used for) investing activities . . . . . . . . . . . . . . . . (1,672.2) (1,677.2)
_________________ _________________
Cash Flows From Financing Activities
Proceeds from the issuance of variable and fixed-rate notes . . . . . (3,067.0) (3,011.5)
Repayments of variable and fixed-rate notes . . . . . . . . . . . . . . . . . 3,675.4 2,804.2
Net (decrease) increase in commercial paper . . . . . . . . . . . . . . . . (247.9) 646.3
Net loans extended — pledged in conjunction with
secured borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (167.9) —
Net repayments of non-recourse leveraged lease debt . . . . . . . . . . 8.6 (61.1)
Cash dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27.8) (28.0)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9.3) (8.0)
_________________ _________________
Net cash flows provided by financing activities . . . . . . . . . . . . . . 164.1 341.9
_________________ _________________
Net (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . (572.1) (617.2)
Cash and cash equivalents, beginning of period . . . . . . . . . . . . . . 2,210.2 1,973.7
_________________ _________________
Cash and cash equivalents, end of period . . . . . . . . . . . . . . . . . . . $ 1,638.1 $ 1,356.5
_________________ _________________
_________________ _________________
Supplementary Cash Flow Disclosure
Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 367.9 $ 287.5
Federal, foreign, state and local income taxes paid, net . . . . . . . . $ 21.7 $ 24.7


4


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Unaudited)

Note 1 — Summary of Significant Accounting Policies
CIT Group Inc., a Delaware corporation (“we,” “CIT” or the “Company”), is a global commercial and
consumer finance company that was founded in 1908. CIT provides financing and leasing capital for consumers
and companies in a wide variety of industries, offering vendor, equipment, commercial, factoring, home lending,
educational lending and structured financing products. CIT operates primarily in North America, with locations in
Europe, Latin America, Australia and the Asia-Pacific region.
These financial statements, which have been prepared in accordance with the instructions to Form 10-Q, do
not include all of the information and note disclosures required by accounting principles generally accepted in the
United States (“GAAP”) and should be read in conjunction with the Company’s Annual Report on Form 10-K for
the year ended December 31, 2004. Financial statements in this Form 10-Q have not been audited by the
independent registered public accounting firm in accordance with the standards of the Public Company
Accounting Oversight Board (U.S.), but in the opinion of management include all adjustments, consisting only of
normal recurring adjustments, necessary for a fair statement of CIT’s financial position and results of operations.
Certain prior period amounts have been reclassified to conform to the current presentation.

Education Lending Acquisition
In February 2005, CIT acquired Education Lending Group, Inc. (EDLG), a specialty finance company
principally engaged in providing education loans (primarily U.S. government guaranteed), products and services
to students, parents, schools and alumni associations. The shareholders of EDLG received $19.05 per share or
approximately $383 million in cash. The acquisition was accounted for under the purchase method, with the
acquired assets and liabilities recorded at their estimated fair values as of the February 17, 2005 acquisition date.
The assets acquired included approximately $4.4 billion of finance receivables and $287 million of goodwill and
intangible assets. The net income impact of the EDLG acquisition for the period of CIT’s ownership during the
quarter ended March 31, 2005 was immaterial.
This business is largely funded with “Education Loan Backed Notes,” which are accounted for under SFAS No.
140 “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.” As EDLG
retains certain call features with respect to these borrowings, the transactions do not meet the SFAS 140 requirements
for sales treatment and are therefore recorded as secured borrowings and are reflected in the Consolidated Balance
Sheet as “Education lending receivables pledged” and “Non-recourse, secured borrowings — education lending.”
Certain cash balances, included in cash and cash equivalents, are restricted in conjunction with these borrowings.

Stock-Based Compensation
CIT has elected to apply Accounting Principles Board Opinion 25 (“APB 25”) rather than the optional
provisions of Statement of Financial Accounting Standards No. 123, “Accounting for Stock-Based Compensation”
(“SFAS 123”), as amended by SFAS No. 148, “Accounting for Stock-Based Compensation — Transition and
Disclosure” in accounting for its stock-based compensation plans. Under APB 25, CIT does not recognize
compensation expense on the issuance of its stock options because the option terms are fixed and the exercise price
equals the market price of the underlying stock on the grant date. The following table presents the pro forma
information required by SFAS 123 as if CIT had accounted for stock options granted under the fair value method
of SFAS 123, as amended ($ in millions, except per share data):
Quarters Ended
March 31,
___________________________________________
2005 2004
______________ ______________
Net income as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $210.4 $189.3
Stock-based compensation expense — fair value method, after tax . . . . . . . . . . . . (5.1) (5.1)
___________ ___________
Pro forma net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $205.3 $184.2
___________ ___________
___________ ___________
Basic earnings per share as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.00 $ 0.89
Basic earnings per share pro forma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.97 $ 0.87
Diluted earnings per share as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.98 $ 0.88
Diluted earnings per share pro forma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.95 $ 0.85
5


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Unaudited) (Continued)
For the quarters ended March 31, 2005 and 2004, net income includes $6.1 million and $4.0 million of after-
tax compensation cost related to restricted stock awards.

Recent Accounting Pronouncements

On January 1, 2005, the Company adopted Statement of Position No. 03-3, “Accounting for Certain Loans
or Debt Securities Acquired in a Transfer” (“SOP 03-3”). SOP 03-3 requires acquired loans to be carried at fair
value and prohibits the establishment of credit loss valuation reserves at acquisition for loans that have evidence
of credit deterioration since origination. The implementation of SOP 03-3 did not have a material financial
statement impact.

In December 2004, the FASB issued a revision to SFAS No. 123, “Share-Based Payment” (“FAS 123R”).
FAS 123R requires the recognition of compensation expense for all stock-based compensation plans as of the
beginning of the first annual reporting period that begins after June 15, 2005. The current accounting for employee
stock options is most impacted by this new standard, as costs associated with restricted stock awards are already
recognized in net income and amounts associated with employee stock purchase plans are not significant. Similar
to the proforma amounts disclosed historically, the compensation cost relating to options will be based upon the
grant-date fair value of the award and will be recognized over the vesting period. The financial statement impact
of adopting FAS 123R is not expected to differ materially from proforma amounts previously disclosed.

In December 2004, the FASB issued FASB Staff Position No. FAS 109-2, “Accounting and Disclosure
Guidance for the Foreign Earnings Repatriation Provision within the American Jobs Creation Act of 2004”
(“FSP 109-2”). Given the lack of clarification of certain provisions and the timing of the Act, FSP 109-2 allows
for time beyond the year ended December 31, 2004 (the period of enactment) to evaluate the effect of the Act on
plans for reinvestment or repatriation of foreign earnings for purposes of applying income tax accounting under
SFAS No. 109.

In May 2003, the FASB issued SFAS No. 150, “Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity.” On November 7, 2003, certain measurement and classification
provisions of SFAS 150, relating to certain mandatorily redeemable non-controlling interests, were deferred
indefinitely. The adoption of these delayed provisions, which relate primarily to minority interests associated with
finite-lived entities, is not expected to have a material financial statement impact on the Company.

Note 2 — Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of
common shares outstanding for the period. The diluted EPS computation includes the potential impact of dilutive
securities, including stock options and restricted stock grants. The dilutive effect of stock options is computed
using the treasury stock method, which assumes the repurchase of common shares by CIT at the average market
price for the period. Options that do not have a dilutive effect (because the exercise price is above the market price)
are not included in the denominator and averaged approximately 16.9 million shares and 16.1 million shares for
the quarters ended March 31, 2005 and 2004, respectively.

6


The reconciliation of the numerator and denominator of basic EPS with that of diluted EPS is presented ($
in millions, except per share amounts, which are in whole dollars; weighted-average share balances in thousands):
Quarter Ended March 31, 2005 Quarter Ended March 31, 2004
_________________________________________________________________________ _________________________________________________________________________
Income Shares Per Share Income Shares Per Share
(Numerator) (Denominator) _________________ Amount (Numerator) (Denominator) _________________ Amount
_____________________ ________________________ _____________________ ________________________
Basic EPS:
Income available to
common stockholders . . . $210.4 210,656 $1.00 $189.3 211,839 $0.89
Effect of Dilutive Securities:
Restricted shares . . . . . . . . . — 1,308 — 540
Stock options . . . . . . . . . . . . — 3,126 — 3,430
___________ _____________ ___________ _____________
Diluted EPS . . . . . . . . . . . . . . $210.4 215,090 $0.98 $189.3 215,809 $0.88
___________ _____________ ___________ _____________
___________ _____________ ___________ _____________

Note 3 — Business Segment Information
The selected financial information by business segment presented below is based upon the allocation of most
corporate expenses. For the quarter ended March 31, 2005, capital is allocated to the segments by applying
different leverage ratios to each business unit using market and risk criteria. The capital allocations reflect the
relative risk of individual asset classes within segments and range from approximately 2% of managed assets for
U.S. government guaranteed loans to approximately 15% of managed assets for longer-term assets such as
aerospace and rail. Prior period balances have been adjusted to conform to current period presentation. ($ in
millions)
Specialty Specialty Total Corporate
Finance - Finance - Commercial Equipment Capital Business and
Commercial _________________________ _____________________ _________________ _____________________ ____________________ _____________________ _______________________
Consumer Finance Finance Finance Segments Other Consolidated
____________________
At and for the Quarter
Ended March 31, 2005
Operating margin . . . . . . $ 206.7 $ 51.2 $ 167.0 $ 56.7 $ 71.2 $ 552.8 $42.3 $ 595.1
Income taxes . . . . . . . . . 39.2 10.4 43.8 12.7 14.8 120.9 1.9 122.8
Net income (loss) . . . . . . 75.1 16.3 73.6 20.3 33.0 218.3 (7.9) 210.4
Total financing and
leasing assets . . . . . . . 10,922.5 10,338.1 13,406.2 6,625.0 9,786.9 51,078.7 — 51,078.7
Total managed assets . . . 14,792.7 11,469.6 13,406.2 9,339.9 9,786.9 58,795.3 — 58,795.3
At and for the Quarter
Ended March 31, 2004
Operating margin . . . . . . $ 195.7 $ 30.4 $ 153.6 $ 48.3 $ 55.7 $ 483.7 $24.9 $ 508.6
Income taxes . . . . . . . . . 39.0 5.1 39.4 10.4 12.1 106.0 15.1 121.1
Net income . . . . . . . . . . . 68.8 8.0 66.6 15.6 25.1 184.1 5.2 189.3
Total financing and
leasing assets . . . . . . . 9,583.0 3,465.1 11,652.7 6,871.7 9,449.1 41,021.6 — 41,021.6
Total managed assets . . . 13,945.6 5,117.0 11,652.7 9,924.2 9,449.1 50,088.6 — 50,088.6

7


Note 4 — Concentrations
The following table summarizes the geographic and industry compositions (by obligor) of financing and
leasing portfolio assets ($ in millions):
March 31, 2005 December 31, 2004
____________________________________________ ____________________________________________
Amount Percent Amount Percent
___________________ ___________________ ___________________ ___________________
Geographic
North America:
West . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,073.2 19.7% $ 8,595.3 19.0%
Northeast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,823.2 19.3% 8,463.4 18.7%
Midwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,365.2 16.4% 6,907.0 15.3%
Southeast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,370.1 14.4% 6,283.3 14.0%
Southwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,325.2 10.4% 4,848.3 10.7%
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,510.4 4.9% 2,483.4 5.5%
________________ _________ ________________ _________
Total North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,467.3 85.1% 37,580.7 83.2%
Other foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,611.4 14.9% 7,580.2 16.8%
________________ _________ ________________ _________
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $51,078.7 100.0% $45,160.9 100.0%
________________ _________ ________________ _________
________________ _________ ________________ _________
Industry
Manufacturing(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,522.2 14.7% $ 6,932.0 15.4%
Retail(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,669.9 13.1% 5,859.4 13.0%
Consumer based lending — home lending . . . . . . . . . . . . . . . . 5,598.7 11.0% 5,069.8 11.2%
Aerospace — commercial and regional . . . . . . . . . . . . . . . . . . . 5,536.5 10.8% 5,512.4 12.2%
Consumer based lending — education lending . . . . . . . . . . . . . 4,435.9 8.7% — —
Transportation(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,911.6 5.7% 2,969.6 6.6%
Service industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,751.2 5.4% 2,854.5 6.3%
Consumer based lending — non-real estate(4) . . . . . . . . . . . . . . 2,362.9 4.6% 2,480.1 5.5%
Wholesaling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,813.9 3.5% 1,727.5 3.8%
Construction equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,680.1 3.3% 1,603.1 3.5%
Communications(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,190.5 2.3% 1,292.1 2.9%
Automotive Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,164.6 2.3% 1,196.3 2.6%
Other (no industry greater than 3.0%)(6) . . . . . . . . . . . . . . . . . . . 7,440.7 14.6% 7,664.1 17.0%
________________ _________ ________________ _________
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $51,078.7 100.0% $45,160.9 100.0%
________________ _________ ________________ _________
________________ _________ ________________ _________
(1) Includes manufacturers of apparel (3.0%), followed by food and kindred products, transportation equipment, chemical and allied products,
textiles, rubber and plastics, industrial machinery and equipment, and other industries.
(2) Includes retailers of apparel (5.7%) and general merchandise (3.6%).
(3) Includes rail, bus, over-the-road trucking industries and business aircraft.
(4) Includes receivables from consumers in the Specialty Finance — commercial segment for products in various industries such as computers
and related equipment and the remaining manufactured housing portfolio.
(5) Includes $293.5 million and $335.2 million of equipment financed for the telecommunications industry at March 31, 2005 and December
31, 2004, respectively, but excludes telecommunications equipment financed for other industries.
(6) Includes financing and leasing assets in the energy, power and utilities sectors, which totaled $1.0 billion, or 2.1% of total financing and
leasing assets at March 31, 2005. This amount includes approximately $703.4 million in project financing and $263.4 million in rail cars
on lease.

8


Note 5 — Retained Interests in Securitizations and Other Investments
The following table details the components of retained interests in securitizations and other investments
($ in millions):
2005 2004
__________________ _______________________
Retained interests in commercial loans:
Retained subordinated securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 372.0 $ 446.2
Interest-only strips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306.8 292.4
Cash reserve accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300.4 323.4
______________ ______________
Total retained interests in commercial loans . . . . . . . . . . . . . . . . . . . . . . . . . 979.2 1,062.0
______________ ______________
Retained interests in consumer loans:(1)
Retained subordinated securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76.9 76.6
Interest-only strips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.2 17.0
______________ ______________
Total retained interests in consumer loans . . . . . . . . . . . . . . . . . . . . . . . . . . . 91.1 93.6
______________ ______________
Total retained interests in securitizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,070.3 1,155.6
Aerospace equipment trust certificates and other(2) . . . . . . . . . . . . . . . . . . . . . . 52.9 72.6
______________ ______________
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,123.2 $1,228.2
______________ ______________
______________ ______________
(1) Comprised of amounts related to home lending receivables securitized.
(2) At December 31, 2004 other includes a $4.7 million investment in common stock received as part of a loan work-out of an aerospace
account.

Note 6 — Accumulated Other Comprehensive Income / (Loss)
The following table details the components of accumulated other comprehensive income / (loss), net of tax
($ in millions):
2005 2004
_________________ ________________________
Changes in fair values of derivatives qualifying as cash flow hedges . . . . . . . . . $20.3 $(27.1)
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.4 (37.2)
Minimum pension liability adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2.3) (2.7)
Unrealized gain on equity and securitization investments . . . . . . . . . . . . . . . . . 7.8 8.6
_________ __________
Total accumulated other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . $31.2 $(58.4)
_________ __________
_________ __________
The changes in fair values of derivatives qualifying as cash flow hedges corresponded to higher market
interest rates during the quarter, as these derivatives effectively convert an equivalent amount of variable-rate debt,
including commercial paper, to fixed rates of interest. See Note 7 for additional information.
Total comprehensive income for the quarters ended March 31, 2005 and 2004 was $300.0 million and
$134.5 million.

Note 7 — Derivative Financial Instruments
As part of managing exposure to interest rate, foreign currency, and, in limited instances, credit risk, CIT, as
an end-user, enters into various derivative transactions, all of which are transacted in over-the-counter markets
with other financial institutions. Derivatives are utilized to hedge exposures, and not for speculative purposes. To
ensure both appropriate use as a hedge and to achieve hedge accounting treatment, whenever possible,
substantially all derivatives entered into are designated according to a hedge objective against a specific or
forecasted liability or, in limited instances, assets. The notional amounts, rates, indices, and maturities of our
derivatives closely match the related terms of the underlying hedged items.
CIT utilizes interest rate swaps to exchange variable-rate interest underlying forecasted issuances of
commercial paper, specific variable-rate debt instruments, and, in limited instances, variable-rate assets for
fixed-rate amounts. These interest rate swaps are designated as cash flow hedges and changes in fair value of these
swaps, to the extent they are effective as a hedge, are recorded in other comprehensive income. Ineffective
amounts are recorded in interest expense.
9


The components of the adjustment to Accumulated Other Comprehensive Income for derivatives qualifying
as hedges of future cash flows are presented in the following table ($ in millions).
Fair Value Total
Adjustments of Income Unrealized
Derivatives Tax Effects Gain (Loss)
__________________________ __________________ ____________________
Balance at December 31, 2004 — unrealized loss . . . . . . . . . . . . . . . $(41.3) $ 14.2 $(27.1)
Changes in fair values of derivatives qualifying as cash flow hedges . . 77.7 (30.3) 47.4
___________ ___________ ___________
Balance at March 31, 2005 — unrealized gain . . . . . . . . . . . . . . . . . . $ 36.4 $(16.1) $ 20.3
___________ ___________ ___________
___________ ___________ ___________
The unrealized gain as of March 31, 2005, presented in the preceding table, primarily reflects our use of
interest rate swaps to convert variable-rate debt to fixed-rate debt, followed by increasing market interest rates.
Assuming no change in interest rates, approximately $5.0 million, net of tax, of Accumulated Other
Comprehensive Income is expected to be reclassified to earnings over the next twelve months as contractual cash
payments are made. The Accumulated Other Comprehensive Income (along with the corresponding swap asset or
liability) will be adjusted as market interest rates change over the remaining life of the swaps.
The ineffective amounts, due to changes in the fair value of cash flow hedges, are recorded as either an
increase or decrease to interest expense as presented in the following table ($ in millions).
Increase/Decrease
Ineffectiveness to Interest Expense
__________________________ _________________________________
For the quarter ended March 31, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.4 Increase
For the quarter ended March 31, 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.3 Decrease
CIT also utilizes interest rate swaps to convert fixed-rate interest on specific debt instruments to variable-rate
amounts. These interest rate swaps are designated as fair value hedges and changes in fair value of these swaps
are effectively recorded as an adjustment to the carrying value of the hedged item, as the offsetting changes in fair
value of the swaps and the hedged items are recorded in earnings.
The following table presents the notional principal amounts of interest rate swaps by class and the
corresponding hedged liability item ($ in millions):
2005 2004
__________________ ________________________
Effectively converts the interest rate on
Floating to fixed-rate swaps — cash flow hedges . . $ 3,292.1 $ 3,533.6 an equivalent amount of commercial
paper, variable-rate notes and selected
assets to a fixed rate.
Effectively converts the interest rate on
Fixed to floating-rate swaps — fair value hedges . . 6,880.3 7,642.6 an equivalent amount of fixed-rate notes
________ ________
and selected assets to a variable rate.
Total interest rate swaps . . . . . . . . . . . . . . . . . . . . . $10,172.4 $11,176.2
________ ________
________ ________
In addition to the swaps in the table above, in conjunction with securitizations, at March 31, 2005, CIT has
$2.1 billion in notional amount of interest rate swaps outstanding with the related trusts to protect the trusts against
interest rate risk. CIT entered into offsetting swap transactions with third parties totaling $2.1 billion in notional
amount at March 31, 2005 to insulate the related interest rate risk.
CIT also utilizes foreign currency exchange forward contracts and cross-currency swaps to hedge currency
risk underlying foreign currency loans to subsidiaries and the net investments in foreign operations. These
contracts are designated as foreign currency cash flow hedges or net investment hedges and changes in fair value
of these contracts are recorded in other comprehensive income along with the translation gains and losses on the
underlying hedged items. CIT utilizes cross currency swaps to hedge currency risk underlying foreign currency
debt and selected foreign currency assets. These swaps are designated as foreign currency cash flow hedges or
foreign currency fair value hedges and changes in fair value of these contracts are recorded in other comprehensive
income (for cash flow hedges), or effectively as a basis adjustment (including the impact of the offsetting
adjustment to the carrying value of the hedged item) to the hedged item (for fair value hedges) along with the
transaction gains and losses on the underlying hedged items.
10


During 2005 and 2004, CIT entered into credit default swaps, with a combined notional value of $118.0
million and terms of 5 years, to economically hedge certain CIT credit exposures. These swaps do not meet the
requirements for hedge accounting treatment and therefore are recorded at fair value, with both realized and
unrealized gains or losses recorded in other revenue in the consolidated statement of income. The fair value
adjustment for the quarter ended March 31, 2005 amounted to a $1.2 million pretax loss. CIT also has certain
cross-currency swaps (with a combined notional principal of $256 million) and an interest rate swap (basis swap
denominated in U.S. dollars with notional principal of $935 million) that was acquired in the education lending
acquisition. These instruments economically hedge exposures, but do not qualify for hedge accounting. These
derivatives are recorded at fair value, with both realized and unrealized gains or losses recorded in other revenue
in the consolidated statement of income.

Note 8 — Certain Relationships and Related Transactions
CIT is a partner with Dell Inc. (“Dell”) in Dell Financial Services L.P. (“DFS”), a joint venture that offers
financing to Dell’s customers. The joint venture provides Dell with financing and leasing capabilities that are
complementary to its product offerings and provides CIT with a steady source of new financings. The joint venture
agreement provides Dell with the option to purchase CIT’s 30% interest in DFS in February 2008 based on a
formula tied to DFS profitability, within a range of $100 million to $345 million. CIT has the right to purchase a
minimum percentage of DFS’s finance receivables on a declining scale through January 2010.
CIT regularly purchases finance receivables from DFS at a premium, portions of which are typically
securitized within 90 days of purchase from DFS. CIT has limited recourse to DFS on defaulted contracts. In
accordance with the joint venture agreement, net income and losses generated by DFS as determined under GAAP
are allocated 70% to Dell and 30% to CIT. The DFS board of directors voting representation is equally weighted
between designees of CIT and Dell, with one independent director. DFS is not consolidated in CIT’s financial
statements and is accounted for under the equity method. At March 31, 2005 and December 31, 2004, financing
and leasing assets related to the DFS program included in the CIT Consolidated Balance Sheet (but excluding
certain related International receivables originated directly by CIT) were approximately $2.2 billion and $2.0
billion, and securitized assets included in managed assets were approximately $2.2 billion and $2.5 billion,
respectively. In addition to the owned and securitized assets acquired from DFS, CIT’s investment in and loans to
the joint venture were approximately $235 million and $267 million at March 31, 2005 and December 31, 2004.
CIT also has a joint venture arrangement with Snap-on Incorporated (“Snap-on”) that has a similar business
purpose and model to the DFS arrangement described above, including limited credit recourse on defaulted
receivables. The agreement with Snap-on extends until January 2006. CIT and Snap-on have 50% ownership
interests, 50% board of directors’ representation, and share income and losses equally. The Snap-on joint venture
is accounted for under the equity method and is not consolidated in CIT’s financial statements. At both March 31,
2005 and December 31, 2004, financing and leasing assets were approximately $1.1 billion and securitized assets
included in managed assets were $0.1 billion. In addition to the owned and securitized assets purchased from the
Snap-on joint venture, CIT’s investment in and loans to the joint venture were approximately $18 million and $16
million at March 31, 2005 and December 31, 2004. Both the Snap-on and the Dell joint venture arrangements were
acquired in a 1999 acquisition.
Since December 2000, CIT has been a joint venture partner with Canadian Imperial Bank of Commerce
(“CIBC”) in an entity that is engaged in asset-based lending in Canada. Both CIT and CIBC have a 50% ownership
interest in the joint venture, and share income and losses equally. This entity is not consolidated in CIT’s financial
statements and is accounted for under the equity method. At March 31, 2005 and December 31, 2004, CIT’s
investment in and loans to the joint venture were approximately $218 million and $191 million.
CIT invests in various trusts, partnerships, and limited liability corporations established in conjunction with
structured financing transactions of equipment, power and infrastructure projects. CIT’s interests in certain of
these entities were acquired by CIT in a 1999 acquisition, and others were subsequently entered into in the normal
course of business. At both March 31, 2005 and December 31, 2004, other assets included approximately $19
million of investments in non-consolidated entities relating to such transactions that are accounted for under the
equity or cost methods.
11


Certain shareholders of CIT provide investment management, banking and investment banking services in
the normal course of business.

Note 9 — Postretirement and Other Benefit Plans
The following table discloses various components of pension expense ($ in millions):
For the Quarters
Ended March 31,
_________________________________________
2005 2004
__________ __________
Retirement Plans
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5.0 $ 4.5
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 3.9
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.8) (4.1)
Amortization of net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7 0.7
________ ________
Net periodic benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5.2 $ 5.0
________ ________
________ ________
Postretirement Plans
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.6 $ 0.5
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8 0.8
Amortization of net (gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.3
________ ________
Net periodic benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.6 $ 1.6
________ ________
________ ________

Note 10 — Commitments and Contingencies
The accompanying table summarizes the contractual amounts of credit-related commitments and purchase
and funding commitments. ($ in millions).
March 31, 2005
____________________________________________________________________________ December 31,
Due to Expire
_______________________________________________ 2004
During 2006 Total Total
2005 and beyond Outstanding Outstanding
_________________ ____________________ _____________________ _______________________
Credit Related Commitments
Financing and leasing assets . . . . . . . . . . . . . . . . . . . . . $1,180.6 $7,850.1 $9,030.7 $8,428.3
Letters of credit and acceptances:
Standby letters of credit . . . . . . . . . . . . . . . . . . . . . . . 559.6 36.7 596.3 618.3
Other letters of credit . . . . . . . . . . . . . . . . . . . . . . . . . 539.4 0.5 539.9 588.3
Acceptances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.3 — 20.3 16.4
Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.8 12.2 95.0 133.1
Purchase and Funding Commitments
Aerospace purchase commitments . . . . . . . . . . . . . . . . . 774.0 1,254.0 2,028.0 2,168.0
Other manufacturer purchase commitments . . . . . . . . . . 470.2 — 470.2 397.0
Sale-leaseback payments . . . . . . . . . . . . . . . . . . . . . . . . 8.8 464.5 473.3 495.4
Venture capital fund commitments . . . . . . . . . . . . . . . . 0.5 36.1 36.6 79.8
In the normal course of meeting the financing needs of its customers, CIT enters into various credit-related
commitments, including commitments to provide financing and leasing capital, letters of credit and guarantees.
Standby letters of credit obligate CIT to pay the beneficiary of the letter of credit in the event that a CIT client to
which the letter of credit was issued does not meet its related obligation to the beneficiary. These financial
instruments generate fees and involve, to varying degrees, elements of credit risk in excess of the amounts
recognized in the consolidated balance sheets. To minimize potential credit risk, CIT generally requires collateral
and other credit-related terms and conditions from the customer. At the time credit-related commitments are
granted, the fair value of the underlying collateral and guarantees typically approximates or exceeds the
contractual amount of the commitment. In the event a customer defaults on the underlying transaction, the
maximum potential loss will generally be limited to the contractual amount outstanding less the value of all
underlying collateral and guarantees.
12


Guarantees are issued primarily in conjunction with CIT’s factoring product, whereby CIT provides the client
with credit protection for its trade receivables without actually purchasing the receivables. The trade terms are
generally sixty days or less. In the event that the customer is unable to pay according to the contractual terms, then
the receivables would be purchased. As of March 31, 2005, there were no outstanding liabilities relating to these
credit-related commitments or guarantees, as amounts are generally billed and collected on a monthly basis.
CIT has entered into aerospace commitments to purchase commercial aircraft from both Airbus Industrie and
The Boeing Company. The commitment amounts detailed in the table are based on appraised values, actual
amounts will vary based upon market factors at the time of delivery. The remaining units to be purchased are 41,
with 15 to be completed in 2005. Lease commitments are in place for twelve of the fifteen units to be delivered in
2005. The order amount excludes CIT’s options to purchase additional aircraft.
Outstanding commitments to purchase equipment to be leased to customers, other than the aircraft detailed
above, relates primarily to rail equipment. Additionally, CIT is party to railcar sale-leaseback transactions under
which it is obligated to pay a remaining total of $473.3 million, approximately $31 million per year through 2010
and declining thereafter through 2024, which is more than offset by CIT’s re-lease of the assets, contingent on its
ability to maintain railcar usage. In conjunction with this sale-leaseback transaction, CIT has guaranteed all
obligations of the related consolidated lessee entity.
CIT has guaranteed the public and private debt securities of a number of its wholly-owned, consolidated
subsidiaries, including those disclosed in Note 14 — Summarized Financial Information of Subsidiaries. In the
normal course of business, various consolidated CIT subsidiaries have entered into other credit agreements and
certain derivative transactions with financial institutions that are guaranteed by CIT. These transactions are generally
used by CIT’s subsidiaries outside of the U.S. to allow the local subsidiary to borrow funds in local currencies.

Note 11 — Legal Proceedings
On September 9, 2004, Exquisite Caterers v. Popular Leasing et al. (“Exquisite Caterers”), a putative national
class action, was filed against 13 financial institutions, including CIT, who had acquired equipment leases
(“NorVergence Leases”) from NorVergence, Inc., a reseller of telecommunications and Internet services to
businesses. The Exquisite Caterers lawsuit is now pending in the Superior Court of New Jersey, Monmouth
County. Exquisite Caterers based its complaint on allegations that NorVergence misrepresented the capabilities of
the equipment leased to its customers and overcharged for the equipment. The complaint asserts that the
NorVergence Leases are unenforceable and seeks rescission, punitive damages, treble damages and attorneys’
fees. In addition, putative class action suits in Florida, Illinois, New York, and Texas and several individual suits,
all based upon the same core allegations and seeking the same relief, have been filed by NorVergence customers
against CIT and other financial institutions.
On July 14, 2004, the U.S. Bankruptcy Court ordered the liquidation for NorVergence under Chapter 7 of the
Bankruptcy Code. Thereafter, the Attorneys General of several states commenced investigations of NorVergence
and the financial institutions, including CIT, that purchased NorVergence Leases. CIT entered into settlement
negotiations with those Attorneys General. CIT reached separate settlements with the New York and New Jersey
Attorneys General. Under those settlements, lessees in those states will have an opportunity to resolve all claims
by and against CIT by paying a percentage of the remaining balance on their lease. Negotiations with other
Attorneys General are continuing. CIT has also been asked by the Federal Trade Commission to produce
documents for transactions related to NorVergence. In addition, on February 15, 2005, CIT was served with a
subpoena seeking the production of documents in a grand jury proceeding being conducted by the U.S. Attorney
for the Southern District of New York in connection with an investigation of transactions related to NorVergence.
CIT is in the process of complying with these information requests.
In addition, there are various proceedings against CIT, which have arisen in the ordinary course of business.
While the outcomes of the NorVergence related litigation and the ordinary course legal proceedings, and the
related activities, are not certain, based on present assessments, management does not believe that they will have
a material adverse effect on the financial condition of CIT.

13


Note 12 — Severance and Facility Restructuring Reserves
The following table summarizes previously established purchase accounting liabilities (pre-tax) related to
severance of employees and closing facilities, as well restructuring activities during 2005 ($ in millions):
Severance Facilities
__________________________________________ __________________________________________
Number of Number of Total
Employees Reserve Facilities Reserve Reserves
__________________ _____________ __________________ _____________ _______________
Balance at December 31, 2004 . . . . . . . . . . 129 $12.2 15 $ 5.7 $17.9
2005 additions . . . . . . . . . . . . . . . . . . . . . . — — — 2.5 2.5
2005 utilization . . . . . . . . . . . . . . . . . . . . . . (20) (3.9) (1) (0.7) (4.6)
______ _________ ____ ________ _________
Balance at March 31, 2005 . . . . . . . . . . . . . 109 $ 8.3 14 $ 7.5 $15.8
______ _________ ____ ________ _________
______ _________ ____ ________ _________
The beginning severance reserves relate primarily to the 2004 acquisition of a Western European vendor
finance and leasing business, and include amounts payable within the year after the acquisition to individuals who
chose to receive payments on a periodic basis. Severance and facilities restructuring liabilities were established
under purchase accounting in conjunction with fair value adjustments to acquired assets and liabilities. The
additions during the quarter ended March 31, 2005 correspond to facility exit plan refinements relating to the
acquired Western European vendor finance and leasing business, and were similarly recorded as fair value
adjustments to purchased liabilities (additions to goodwill). The facility reserves relate primarily to shortfalls in
sublease transactions and will be utilized over the remaining lease terms, generally 6 years.

Note 13 — Goodwill and Intangible Assets, Net
Goodwill and intangible assets totaled $906.4 million and $596.5 million at March 31, 2005 and December 31,
2004. The Company periodically reviews and evaluates its goodwill and other intangible assets for potential
impairment. Effective October 1, 2001, the Company adopted SFAS No. 142, “Goodwill and Other Intangible Assets”
(“SFAS 142”), under which goodwill is no longer amortized but instead is assessed periodically for impairment.
The most recent goodwill impairment analysis was performed during the fourth quarter of 2004, which
indicated that the fair value of goodwill was in excess of the carrying value.
The following table summarizes the goodwill balance by segment ($ in millions):
Specialty Specialty
Finance - Finance - Commercial
Commercial Consumer Finance Total
____________________ _________________ _____________________ ______________
Balance at December 31, 2004 . . . . . . . . . . . . . . . . . . . . . . $62.3 $— $370.4 $432.7
Additions, foreign currency translation, other . . . . . . . . . . . 0.7 257.6 — 258.3
_________ ___________ ___________ ___________
Balance at March 31, 2005 . . . . . . . . . . . . . . . . . . . . . . . . $63.0 $257.6 $370.4 $691.0
_________ ___________ ___________ ___________
_________ ___________ ___________ ___________
The increase in goodwill during the quarter was primarily due to the education lending acquisition in
Specialty Finance — consumer. Management is in the process of finalizing additional integration plans relating to
this acquisition. Accordingly, additional purchase accounting refinements may result in an adjustment to goodwill
and acquired intangibles.
Other intangible assets, net, are comprised primarily of acquired customer relationships (Specialty Finance and
Commercial Finance balances), as well as proprietary computer software and related transaction processes
(Commercial Finance). The following table summarizes the net intangible asset balances by segment ($ in millions):
Specialty Specialty
Finance - Finance - Commercial
Commercial Consumer Finance Total
____________________ _________________ _____________________ ______________
Balance at December 31, 2004 . . . . . . . . . . . . . . . . . . . . . . $68.0 $— $ 95.8 $163.8
Additions, foreign currency translation, other . . . . . . . . . . . (2.8) 29.0 30.0 56.2
Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.4) — (2.2) (4.6)
_________ _________ ___________ ___________
Balance at March 31, 2005 . . . . . . . . . . . . . . . . . . . . . . . . $62.8 $29.0 $123.6 $215.4
_________ _________ ___________ ___________
_________ _________ ___________ ___________

14

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